As businesses expand and operate internationally, differences in standards of accounting practices between countries have made it difficult to compare financial statements. (Chakrabarty, 2011; Gill, 2007; University of Pennsylvania, 2002) This is prohibitive in getting a clear picture regarding the financial status of an organization. (Chakrabarty, 2011; Gill, 2007) In the US, Generally Accepted Accounting Principles (GAAP) “are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cashflow statements, for publicly traded companies and many private companies” (Paul, 2008). Many countries, like the US, have their own set of GAAP. Globalization of business is increasing the need for a more unified system of financial reporting among countries. (Chakrabarty, 2011; Gill, 2007; University of Pennsylvania, 2002) Several financial organizations are working toward International Financial Reporting Standards (IFRS), which will serve as a global guideline, allowing for comparison of financial reports produced by corporations regardless of where their headquarters are located. (Chakrabarty, 2011) This paper will discuss some of the differences between the accounting practices of two internationally operating retail companies; Abercrombie & Fitch Co. (A&F), with corporate headquarters in the United States, and H&M, with corporate headquarters in Sweden, analyze some aspects of their financial statements, and compare this information. Abercrombie & Fitch Co. (A&F), is a retailer of casual apparel for men, women, and children, selling products such as casual sportswear, personal care products, and accessories. Its subsidiaries include Abercrombie & Fitch, abercrombie kids, Hollister, and Gilly Hicks. (Abercrombie & Fitch, 2012a; Reuters, n.d.) A&F offers online